As long as your emergency fund has enough in it to get you through third year, I'd put the extra savings toward tuition rather than getting extra loans. You can always re-evaluate at the end of third year and ask for extra loans if necessary for fourth year (if you need them for interview expenses, etc.).
Keep in mind, we did the exact opposite of what I'm advising (took out extra loans because I wanted to have plenty in savings for what-ifs). We used the money for away rotations, interviews, moving expenses, and ultimately buying a house -- and I couldn't be happier with our decision. (We're here for five years, so buying made sense for us. Plus, I actually enjoy things like painting/renovating/DIY projects.) We've been able to handle all of life's transitions without scrambling for money, largely because of the savings I built up in med school.
One thing to keep in mind is that it doesn't have to be an all or nothing thing. You could pay half of tuition from savings and half from loans (or a third from savings, etc.) or whatever percentage makes sense to you. That way you'd still have some cushion in case of emergencies, and you'd still be helping to reduce loan costs down the line.
Keep in mind, we did the exact opposite of what I'm advising (took out extra loans because I wanted to have plenty in savings for what-ifs). We used the money for away rotations, interviews, moving expenses, and ultimately buying a house -- and I couldn't be happier with our decision. (We're here for five years, so buying made sense for us. Plus, I actually enjoy things like painting/renovating/DIY projects.) We've been able to handle all of life's transitions without scrambling for money, largely because of the savings I built up in med school.
One thing to keep in mind is that it doesn't have to be an all or nothing thing. You could pay half of tuition from savings and half from loans (or a third from savings, etc.) or whatever percentage makes sense to you. That way you'd still have some cushion in case of emergencies, and you'd still be helping to reduce loan costs down the line.
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